Which of the Following Is an Effect of an Increase

question 87

Multiple Choice

Which of the following is an effect of an increase in government purchases?

• A)It decreases interest rates.
• B)It results in a net decrease in aggregate demand.
• C)It crowds out investment spending by business.
• D)It decreases money demand.

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Definitions:

Transformation

A thorough or dramatic change in form or appearance.

Social Change

The significant alteration of social structure and cultural patterns through time.

Demographic Factors

Characteristics of a population used in social science studies, such as age, gender, income level, education, and ethnicity.

Political Regime

The form of government or a set of rules, cultural or social norms, that regulate the operation of a government or institution and its interactions with society.